GIFT  OF 


"n  28  1017 


France  and  America 

Their  Mutual  Interests 
and  Obligations 


'  ,  \^  R  A  /,    . 


0  N  1  V  ii  I-  -^^  I  '   ' 
OF 


Guaranty  Trust  Company 
of  New  York 


France  and  America 

Their  Mutual  Interests 
and  Obligations 


Guaranty  Trust  Company  of  New  York 

140  Broadway 

PARIS  OFFICE  FIFTH  AVENUE  OFFICE  LONDON  OFFICE 

Rue  des  Italiens,  1  &  3         Fifth  Avenue  and  43d  Street       32  Lombard  Street,  E.  C. 


COPYRIGHT,   1917 
GUARANTY  TRUST  COMPANY  OF  NEW  YORK 


>' 


France  and  America 


A  nnouncement 

For  over  twenty  years  the  Guaranty  Trust 
Company  of  New  York  has  maintained  an 
office  in  London,  at  32  Lombard  St.,  E.  C. 
To  the  foreign  trade  of  the  United  States 
this  office  has  been  of  value.  The  progress 
it  has  made  and  the  magnitude  of  its  opera- 
tions are  but  a  reflection  of  the  rapid  develop- 
ment of  the  parent  company  in  New  York. 
The  Company  has  now  opened  a  similar  office 
in  Paris  at  Nos.  1  &  3  Rue  des  Italiens.  This 
location  is  very  close  to  the  Grand  Boule- 
vards and  about  midway  between  the  Bourse 
and  the  Place  de  TOpera,  the  two  centres  of 
business  activity  in  Paris.  The  Paris  offices 
of  the  Trust  Company  will  have,  as  close 
neighbors,  the  Credit  Lyonnais,  the  Banque 
de  rUnion  Parisienne,  the  Banque  Nationale 
de  Credit,  the  Credit  Mobilier,  and  the 
Banque  Union  de  Moscou. 


3G6320 


The  offices  of  the  American  Consul  General 
are  located  in  the  same  building,  which  adds 
an  important  convenience.  Adjoining  is  the 
office  building  of  "Le  Temps  "  one  of  the  lead- 
ing and  well-known  newspapers  of  Paris. 

With  a  frontage  of  81  feet  and  a  propor- 
tionate depth,  the  Paris  quarters  are  spacious 
and  convenient.  Their  equipment  is  thor- 
oughly modern  and  includes  a  safe  deposit 
and  safe  custody  department. 

Alexander  Phillips,  who  has  served  as  the 
Paris  representative  of  the  Trust  Company 
heretofore,  and  who  has  a  broad  grasp  of 
foreign  business  conditions  and  of  French 
banking  laws  and  Customs,  is  in  charge  of 
the  new  office.  G.  Hebmann,  who  has  been 
manager  of  the  leading  French  branches 
of  the  Comptoir  National  d'Escompte  de 
Paris  serves  as  Sub-Manager.  William  G. 
Wendell,  formerly  in  charge  of  the  New 
England  bond  business  of  the  Trust  Com- 
pany, serves  as  Secretary,  with  Richard 
P.  Staigg  as  his  assistant.  Robert  Bienz  and 
B.  Avegno,  from  the  London  office,  have 
charge  of  departments  in   Paris,   and   Olaf 

[4] 


Giese  is  the  Chief  Accountant.  The  system 
of  accounting  and  auditing  followed  in  the 
Paris  office  will  conform  to  that  used  in  the 
main  office  and  all  its  branches.  B.  G.  Smith, 
the  Auditor  of  the  Trust  Company,  went  to 
Paris  and  perfected  plans  to  this  end. 

Through  the  establishment  of  this  branch, 
it  is  believed  that  another  important  link  has 
been  forged  in  the  chain  of  friendly  and  mutu- 
ally profitable  relations  between  French  and 
American  banks  and  business  houses.  It  will 
enable  the  Guaranty  Trust  Company  to 
handle  a  large  volume  of  business  with 
France,  and,  after  the  war  has  come  to  an 
end,  to  develop  the  existing  commercial  re- 
lations between  the  two  republics.  Ameri- 
can business  concerns  and  individuals  having 
interests  abroad  will  find  it  to  their  advant- 
age to  establish  banking  relations  with  the 
Paris  office  of  the  Guaranty  Trust  Company, 
as  will  American  citizens  traveling  abroad  or 
serving  with  the  armies  in  France. 

Conscious  of  America's  debt  to  France,  and 
of  the  friendly  ties  enduring  between  the 
nations  for  more  than  one  hundred  years — 

[5] 


ties  which  time  only  strengthens — we  deem 
the  occasion  fitting  to  mention  a  few  of  the 
many  services  we  owe  to  France,  and  to 
sketch  briefly  some  of  her  achievements  in 
industry,  commerce,  and  finance. 

Guaranty  Trust  Company  of  New  York 


France  and  America 


Between  America  and  France,  separated  by 
an  ocean  but  united  by  their  common  love 
of  liberty,  justice,  and  humanity — ever  the 
ideals  of  peoples  of  real  strength — the  friend- 
liest, the  most  fraternal  relationship  has  been 
maintained  for  nearly  a  century  and  a  half. 

The  liberty  that  America  has  enjoyed  for 
one  hundred  and  forty  years,  France  helped 
her  to  achieve.  The  swords  of  Lafayette  and 
Rochambeau,  aided  by  the  guns  of  De  Grasse 
upon  the  high  seas,  assisted  in  cutting  the 
foreign  ties  that  bound  the  American  colonies 
prior  to  the  War  for  Independence;  and  from 
the  private  purse  of  King  Louis  himself  came 
the  first  loan  to  America — unsecured  and  un- 
conditional— to  finance  that  historic  under- 
taking. It  w^as  with  entire  justice  that 
Washington  wrote  to  Rochambeau;  "To  the 
generous  aid  of  your  nation  and  to  the 
bravery  of  its  sons  is  to  be  ascribed  in  a  very 
great  degree  that  independence  for  which  we 
have  fought." 

[7] 


France  Was  Our  Sponsor 

Following  the  decisive  victory  at  Yorktown — 
impossible  without  the  assistance  and  co- 
operation of  Washington's  French  allies  on 
land  and  sea — which  virtually  ended  the  War 
for  Independence,  came  the  treaty  of  Ver- 
sailles in  1783.  It  was  this  treaty  which 
organized  and  created  the  United  States  of 
America;  and  it  was  a  French  sloop  which 
brought  to  Boston  the  first  announcement  of 
its  execution.  Thus,  France,  having  helped 
us  to  win  our  independence,  gave  us  a  friendly 
asylum  in  which  to  conclude  our  terms  of 
peace.  She  did  more:  she  stood  sponsor  for 
us  upon  our  entry  into  the  sisterhood  of 
nations;  was  the  first  European  state  to  re- 
ceive a  diplomatic  representative  from  our 
shores;  and  similarly,  was  the  first  to  recog- 
nize our  national  dignity  by  sending  to  us  a 
representative  from  her  Court. 

Always  Americans  Friend 

When  in  1803  the  United  States  desired  to 
purchase  from  France  the  city  of  New  Or- 
leans, Napoleon  the  Great  ceded  us  the  whole 

[8] 


Louisiana  Territory  with  its  enormous  re- 
sources, thus  giving  us  access  to  the  Carib- 
bean Sea  and  to  the  Pacific  Ocean,  and  mak- 
ing ours  the  lands  that  now  form  the  vast  and 
fertile  plain  west  of  the  Mississippi.  The 
acquisition  of  this  territory  was  of  inestimable 
significance  in  the  development  of  the  nation; 
after  the  Revolution  itself  and  the  Civil  War 
perhaps  the  most  significant  event  in  our 
history.  Again,  in  1812,  though  not  directly 
allied  with  us,  France  indirectly  aided  us. 
And  in  1898,  following  the  close  of  the  Span- 
ish-American War,  from  France  came  the 
overtures  for  peace,  and  Paris  was  again  the 
scene  of  the  treaty  which  concluded  matters. 
Thus,  in  1783,  1803,  1812,  and  1898,  France 
participated  in  the  most  momentous  acts  of 
our  national  existence.  This  continuity  of 
goodwill  and  service  emphasizes  the  close, 
intimate,  and  deep  sympathy  which  unites 
the  two  peoples. 

The  Nation's  Capitol  of  French  Design 

It  was  a  French  engineer.  Major  L'Enfant, 
who  had  fought  and  bled  for  us  during  the 

[9] 


War  for  Independence,  who  was  commis- 
sioned by  President  Washington  to  prepare 
a  plan  for  the  building  of  our  Federal  city, 
after  that  undertaking  had  been  decreed  by 
Congress  on  July  16,  1790.  Major  L'Enfant 
did  this  work  with  conspicuous  ability  and  his 
plans  were  closely  followed  though  he  did  not 
live  to  see  realized  the  city  of  his  dreams. 
However,  on  April  28,  1909,  his  remains  were 
removed  from  their  previous  resting  place  and 
reinterred  in  the  Arlington  National  Ceme- 
tery with  fitting  ceremonies,  in  which  the 
President  of  the  United  States,  Representa- 
tives of  Congress,  the  Supreme  Court,  the 
Society  of  the  Cincinnati,  and  other  patriotic 
organizations,  participated. 

Reciprocal  Courtesies 
Thirty  years  ago  the  people  of  France  gave 
to  the  people  of  the  United  States  the  colossal 
figure  of  Liberty  which  stands  on  Bedloe's 
Island  in  New  York  harbor.  There,  raised 
high  above  the  waters  of  the  harbor  and 
looking  out  toward  the  open  sea,  flaming 
torch  in  hand,  the  great  statue  welcomes 
the  traveller  visiting  our  shores  and  the  im- 
[10] 


migrant  seeking  refuge  in  free  America. 
Later,  moved  to  an  expression  of  our  undying 
appreciation  of  a  French  gentleman  and  a 
hero,  the  people  of  the  United  States  gave 
to  the  people  of  France  a  monument  to  the 
memory  of  Lafayette,  which  was  unveiled  in 
Paris  on  July  4,  1900.  The  ceremonies  upon 
this  occasion  were  imposing  and  dignified, 
and  the  event  united  yet  more  closely  the 
sister  republics  of  America  and  France. 

The  deeply  rooted  sense  of  attachment 
existing  between  the  peoples  of  France  and 
America  was  again  manifested  when  the 
United  States  welcomed  Marshal  Joffre, 
former  Premier  Viviani,  and  the  French 
Commission  on  their  memorable  visit  to 
this  country  shortly  after  our  entrance  into 
the  European  War.  Everywhere  they  were 
acclaimed  with  the  wildest  enthusiasm.  To 
the  American  public  they  typified  the  soul 
of  heroic  France,  and  the  great,  generous 
heart  of  Columbia  beat  with  affection  for 
them.  This  visit,  in  the  unity  of  feehng  it 
expressed,  was  one  of  the  most  significant 
events  in  the  history  of  two  peoples. 

fill 


The  emotions  awakened  here  by  Joffre 
and  Viviani  were  equalled  only  by  those 
aroused  by  General  Pershing  and  his  staff 
when  they  arrived  in  France  as  the  vanguard 
of  the  United  States  Army — the  harbingers 
of  America's  might  come  to  the  rescue  of 
France  and  Democracy. 

Liberty  and  Democracy  Unite  Us  Today 

The  points  of  sympathy  between  France  and 
America  are  too  many  to  enumerate,  but 
the  spirit  of  liberty  and  its  resultant  democ- 
racy are,  today  as  always,  the  major  ideals 
of  both  nations.  Seeking  no  victories  but 
those  of  peace,  no  territory  except  their  own, 
no  sovereignty  except  sovereignty  over 
themselves, — the  independence  and  equal 
rights  of  the  weakest  member  of  the  family 
of  nations  are  to  the  people  of  the  United 
States  and  of  France  entitled  to  as  much  re- 
spect as  those  of  the  mightiest  empire.  In 
defense  of  these  principles,  France  is  engaged 
in  a  death  struggle  with  militant  autocracy 
and  ruthless  aggression  and  it  is  not  surpris- 
ing to  learn  that  she  has  loaned  to  her  allies 

[12] 


and  to  other  friendly  states  7,000,000,000 
francs  with  which  to  further  the  cause  of 
democracy.  It  is  in  keeping  with  America's 
traditions  that  since  the  date  on  which  we 
formerly  aligned  ourselves  with  France  and 
her  allies  in  the  great  struggle,  our  Govern- 
ment has  loaned  to  France  $370,000,000. 

Genius,  Industry,  and  Thrift 

Until  the  outbreak  of  the  war  in  1914,  France 
was  busy  and  prosperous.  Then  followed  an 
upheaval.  Any  study  of  her  past,  however, 
particularly  since  1871,  shows  her  ability  to 
recuperate  rapidly  from  losses  inflicted  by 
war,  and  reveals  clearly  her  industrial 
strength,  and  her  financial  elasticity.  Suffer- 
ing the  loss  of  Alsace  and  Lorraine  in  1870- 
1871,  with  1,600,000  inhabitants,  she  was 
deprived  of  two  fertile  provinces  of  great  eco- 
nomic importance  and  value.  This  loss  was 
valiantly  sustained,  and  the  financial  and  in- 
dustrial dislocations  attendant  upon  the 
Franco-Prussian  campaign  were  speedily  com- 
posed. Her  creative  genius,  the  great  re- 
sources of  her  soil,  her  application  to  industry, 
[131 


and  her  thrift  explain  her  rapid  recuperation 
and  progress. 

Wealth,  Gold,  and  Savings 

These  things  make  for  the  remarkable  sta- 
bility of  the  wealth  of  France.  In  1869  it  was 
estimated  at  about  185  milliards  of  francs;  in 
1871  at  175  milliards  of  francs;  in  1878  at  216 
milliards  of  francs  and  in  1914,  before  the 
outbreak  of  the  war,  at  287  milliards  of  francs. 
The  valuation  of  her  income,  according  to 
competent  authorities,  rose  successively  from 
12  milliards  of  francs  in  1853,  to  22  milliards 
of  francs  in  1878,  to  28  milliards  of  francs  in 
1903,  and  to  32  milhards  of  francs  in  1914. 

Immediately  prior  to  the  war,  France  had 
a  gold  stock  equalling  $1,200,000,000  and  a 
stock  of  silver  aggregating  $411,100,000.  Of 
gold,  silver,  and  paper,  her  per  capita  allot- 
ment amounted  to  $48.63,  which  was  more 
than  25%  in  excess  of  the  per  capita  of  gold, 
silver,  and  paper  for  the  United  States  in  the 
corresponding  period;  more  than  twice  that 
of  the  United  Kingdom  of  Great  Britain  and 
Ireland;  approximately  two  and  one-half 
[14  1 


times  that  of  Germany;  and  more  than  four 
times  that  of  Austria  Hungary. 

With  a  population  of  39,600,000  at  the 
beginning  of  1913,  France  had  in  postal  and 
private  savings  banks  accounts  of  14,578,897 
depositors,  with  aggregate  deposits  equivalent 
to  $1,091,303,658.  On  June  30,  1915,  the 
United  States  had  only  11,811,169  depositors 
out  of  a  population  of  101,740,000.  Thus, 
almost  40%  of  the  people  of  France  work  for 
the  future  and  accumulate  for  posterity, 
against  only  11%  for  this  country. 

Basis  of  Nation's  Strength 

The  financial  solidarity  of  the  French  republic 
is  to  be  ascribed  to  three  influences:  first,  a 
thoroughly  sound  banking  system,  central- 
ized in  one  of  the  greatest  banking  institu- 
tions of  the  world,  the  Bank  of  France;  sec- 
ond, the  ingrained  thrift  and  frugality  of  the 
French  people  as  a  whole,  together  with  a 
national  economic  vigor  not  elsewhere  sur- 
passed; third,  wise  supervision,  and  pa- 
triotic cooperation  by  the  government  with 
banking  and  business  interests.  The  Franco- 
[15] 


Prussian  war  of  1870-1871  taught  the  French 
people  the  meaning  of  thrift  and  economy. 
So  well  did  they  learn  this  lesson,  that  the 
whole  sum  of  the  indemnity  demanded  by 
Germany,  aggregating  $1,000,000,000,  was 
raised  within  the  republic's  confines  by  its 
own  inhabitants  and  paid  off  more  than  one 
year  before  the  time  stipulated  by  the 
Germans. 

French  Loans  Popular 

The  habit  thus  acquired  has  never  been  for- 
gotten by  the  French,  and  today  the  aggre- 
gate number  of  investors  purchasing  the 
French  war  loans  has  reached  the  amazing 
total  of  4,500,000  individual  subscribers. 
Perhaps  no  other  country,  in  proportion  to  its 
population,  can  make  so  good  a  showing. 
France  is  particularly  fortunate  in  that  her 
small  investors  prefer  "safe"  investments 
rather  than  offerings  which  promise  high 
returns.  Government  Rentes  or  Consols  in 
France  are  perpetual,  and  this  characteristic 
seems  to  obtain  for  them  increasing  favor  in 
the  eyes  of  the  French  people. 
fl6l 


National  Credit 

One  of  the  clearest  evidences  of  the  loyal  way 
in  which  the  French  people  stand  behind  the 
nation  in  its  financing,  is  the  heavy  over- 
subscription which  has  marked  the  issue  of 
many  of  its  loans.  As  an  illustration,  the 
loan  of  1872,  for  3,500,000,000  francs  at  5%, 
brought  in  subscriptions  for  43,816,096,551 
francs;  and  the  loan  of  1891,  for  939,480,000 
francs  at  3%,  resulted  in  a  total  subscription 
of  16,000,000,000  francs.  The  government 
policy  of  issuing  its  loans  in  small  denomina- 
tions makes  for  their  popularity  and  wide- 
spread distribution.  In  the  French  ledger 
of  public  debt  for  1913,  holders  of  3%  Rentes 
totaled  4,443,904  and  of  these  only  14,231 
held  allotments  in  excess  of  1,000  francs. 
Those  who  held  income  warrants  for  3  francs 
numbered  107,447;  for  5  francs,  250,539;  for 
20  francs,  395,613;  and  for  30  francs,  663,747. 
This  unusual  tendency  of  the  French  people 
contributes  largely  to  the  stability  of  prices 
of  government  securities  and  to  the  low  rate  of 
interest  on  the  public  debt:  from  1873  to  1901 
the  rate  did  not  exceed  33^%. 

fl7l 


Loan  Price  Recoveries 

Moreover,  the  government  does  its  part  to 
warrant  and  retain  the  confidence  of  the 
holders  of  its  securities.  One  of  its  wise 
poHcies  is  to  impose  new  taxes  to  defray  the 
interest  charges  on  new  security  issues.  It 
began  this  practice  after  the  Franco-Prussian 
War,  and  is  today  following  the  same  rule  in 
regard  to  securities  issued  to  finance  the  pres- 
ent conflict.  This  continuity  of  purpose, 
doubtless,  will  prove  reassuring  to  all  holders 
of  French  government  securities.  Under 
this  method  of  procedure  the  French  liberat- 
ing loans  of  1870-1871,  previously  referred  to, 
issued  at  82.5  and  84.5,  respectively,  showed 
a  high  price  of  93.4  and  a  low  of  85  in  1873, 
went  to  a  high  of  106.4  and  a  low  of  99.6  in 
1875,  and  reached  a  maximum  of  120.8  in 
1880  with  a  low  of  115.3.  Similarly,  the  3% 
Rentes  which  had  dropped  to  50.3  in  March, 
1871,  reached  par  in  1892  and  sold  five  years 
later  at  105.2. 

All  these  facts  and  figures  reveal  in  differ- 
ent ways  the  soHdarity  of  French  finance. 
To  sustain  the  credit  of  their  nation  is  almost 
fl8l 


a  religion  with  the  French  people.  It  is, 
therefore,  with  no  sense  of  discouragement 
that  those  who  know  France  best  look  to  her 
future. 

^^ Industries  de  Luxe'' 

There  is  another  aspect  of  the  genius  of 
France  which  justifies  this  optimism:  her 
splendid  aptitude  for  industrial  activities,  and 
her  resulting  position  in  the  industrial 
world. 

Industrial  development  in  France  for  more 
than  a  century  shows  an  amazing  diversity. 
This  compels  her  to  import  large  quantities 
of  raw  material,  which  are  converted  into 
manufactured  products  of  great  value.  No 
other  country  approaches  France  in  the  art- 
istic perfection  of  many  of  her  exports,  and 
for  this  reason  France  enjoys  a  practical 
monopoly  of  the  "industries  de  luxe."  Ac- 
cordingly, because  of  the  artistic  nature  of 
her  products,  the  "  quality  rather  than  quan- 
tity" element  in  her  manufactures,  a  rela- 
tively smaller  export  tonnage  earns  a  greater 
profit  than  is  the  case  with  her  competitors 
fl9l 


exporting  coal,  other  raw  materials,  or  ordin- 
ary manufactured  products.  To  France  be- 
longs the  special  and  highly  profitable  privi- 
lege of  supplying  to  other  countries  "objets  de 
luxe"  which  cannot  be  produced  elsewhere. 
To  America  come  many  exports  of  this  class, 
and  so  long  as  the  demand  persists  for  French 
fashions  and  French  porcelains,  for  the 
silks  of  Lyons  and  the  delicate  scientific  in- 
struments of  Paris,  the  commercial  relations 
between  the  United  States  and  France  will 
be  a  source  of  pleasure  on  the  one  side  and 
profit  on  the  other. 

Industrial  Progress 

In  judging  the  industrial  status  of  any  na- 
tion, its  production  and  consumption  of  coal, 
iron,  and  steel,  and  the  growth  of  its  trans- 
portation systems  are  highly  significant  fac- 
tors. 

Coal 

In  1869,  French  industries  consumed  21 
million  tons  of  coal,  of  which  13.5  millions 
were  taken  from  home  mines.     In  1912,  the 

[201 


consumption  was  61  million  tons,  of  which  41 
million  tons  were  taken  from  home  mines. 

Iron  and  Steel 

In  1869,  the  French  output  of  cast  iron  was 
1,380,000  tons,  and  of  steel,  1,060,000  tons. 
In  1914,  France  produced  5,311,000  tons  of 
cast  iron  and  4,635,000  tons  of  steel. 

Railways 

The  increasing  activity  of  her  railway 
system  is  similarly  demonstrable.  In  1869, 
there  were  in  France  10,743  miles  of  railroad 
track;  in  1912,  there  were  31,546  miles. 

Navigation  and  Tonnage 

Between  1869  and  1912,  inland  navigation 
increased  150%;  while  the  traffic  of  her  mer- 
cantile marine  had  amazingly  expanded. 
The  tonnage  entering  French  ports  in  1869  is 
set  down  as  11,000,000  tons.  In  1912,  this 
had  been  increased  to  53,000,000  tons. 

Our  Exports  to  France 
Our  official  records  show  that,  as  early  as 
1790,  the  United  States  exported  to  France 
merchandise  valued  at  $1,384,246.     By  1833 

[21] 


this  valuation  had  been  increased  to  $13,705,- 
915.  In  1866,  merchandise  shipped  to  France 
from  the  United  States  was  valued  at  $51,- 
312,103;  and  in  1880,  when  the  hundred- 
million  dollar  mark  was  crossed  for  the  first 
time,  our  shipments  to  our  sister  republic 
were  valued  at  $100,063,044.  Since  1907, 
our  annual  exports  to  France  from  this  coun- 
try have  always  exceeded  $100,000,000,  rising 
in  1915  to  the  then  unprecedented  total  of 
$369,397,170  and  in  the  following  year  mount- 
ing still  higher,— to  $628,851,988. 

Our  Imports  From  France 

The  values  of  imports  from  various  coun- 
tries to  the  United  States  were  not  officially 
recorded  prior  to  1820.  For  the  year  1820- 
1821,  our  imports  from  France  were  valued  at 
$4,125,292.  By  1830,  this  valuation  had 
almost  doubled,  the  total  reaching  $7,659,- 
869.  In  1860,  French  imports  to  America 
were  valued  at  $43,171,413,  and  in  1890  at 
$77,622,311.  For  1910,  the  figures  record  a 
gain  of  approximately  84%,  the  total  valua- 
tion   for    that    year's    imports    standing    at 


$132,363,346.  In  1914  (the  year  of  the  war's 
outbreak),  imports  from  France  to  this  coun- 
try totaled  $141,446,252.  In  1915,  this  total 
was  practically  cut  in  half,  the  figures  being 
$77,158,740.  But  for  1916  a  surprising 
gain  is  recorded — French  imports  to  America 
rising  to  $102,077,060.  A  nation  that  can 
achieve  such  a  commercial  recovery  while  her 
territory  is  being  ravished  by  the  invader, 
possesses  recuperative  powers  which  justify 
the  belief  that  she  will  emerge  from  the 
present  conflict  prepared  to  meet  and  solve 
triumphantly  the  problems  which  confront 
her. 

The  commercial  and  industrial  record  of 
France,  following  past  wars,  indicates  that 
she  should  recover  quickly  from  the  de- 
struction inflicted  in  the  present  conflict. 
The  reconstruction  of  railroads,  the  erection 
of  factories  to  replace  those  destroyed,  and 
the  replacement  of  the  mechanism  of  indus- 
trial activity  that  will  be  required,  and  that 
is  in  part  already  planned,  offer  a  peculiarly 
inviting  field  to  American  capital  and  enter- 
prise. Tentative  steps  have  already  been 
[23  1 


taken  by  representatives  of  American  engi- 
neers and  business  men  in  this  work.  Aside 
from  its  attractive  business  aspect,  the  en- 
listment of  American  money  and  effort  in  the 
great  task  of  reconstruction  that  will  remain 
at  the  end  of  the  war  will  tend  to  cement  still 
more  closely  the  ties  that  bind  the  two  great 
Republics  together,  and  will  enable  Americans 
to  discharge  in  part  the  debt  they  owe  to 
France  for  her  friendly  interest  in  the  wel- 
fare and  progress  of  the  United  States  from 
the  beginning  of  its  life  as  a  nation. 

August  9,   1917 


24 


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18  1939 


207»-ll'20 


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